Planning And Funding Your Long Term Care

In these modern times, it is essential to begin planning your financial security as early as possible, if you wish to have a secure retirement. This means private pension and investment portfolios that are tailored to suit you, and with buying your home, you can soon get on the property ladder, which is essential for the future. This has long been the goal of most working people, and as the value of your home increases, equity is gained.

What is equity?

Broadly speaking, equity is the difference between the current value of the property, and the total amount outstanding on the loan. Typically, equity takes a few years to accumulate, but when it does, the amount becomes significant, and over a period of ten or fifteen years, the amount of profit in your asset allows you to upgrade and buy a bigger property.

What is equity release?

The equity that has built up in your home over the years can normally be realised when you sell the property. After your mortgage is paid in full, the sum of money remaining can be used to put down a large deposit on a new home, or as some prefer, you can use the money in your investment portfolio, which will give you a good return. Equity release is a method to take the equity from your property without having to sell, and many people prefer to do this, rather than finding a new home.

Secure ownership

Some people mistakenly think that if you take out your equity, the property is owned by the lender, when in fact, your ownership remains the same, and what’s more, the equity is tax free. This money could be used for a number of reasons, you might want to take a round the world cruise, and why not? You have worked hard and the equity gained in your home is yours to use as you see fit, whether it is a business venture, or buying that dream car you’ve always wanted, you can reap the benefits of receiving your equity without having to sell your home.

Portable plans

If you decide to use equity release, it doesn’t mean you are tied to any particular property, so if you decided to downsize at any time, your equity release program can easily be transferred to the new home. If you are interested in equity release, are a leading broker in the UK, and can advise you on all aspects of equity release.

The later years

Once a person reaches 55, they would have accumulated a significant amount of equity, and may wish to use that for something, and with equity release, you can receive your equity without having to sell your home. Many people use their equity for a retirement home, or perhaps for an alternative investment.

No monthly payments

With equity release, there are no monthly payments, as the terms are realised when the property is finally sold, which takes away the stress of making monthly payments, and with a transferable program, you can sell at any time and the equity release is transferred to the new property.